Southwest Florida jobless rate edges up to 8 percent

Photo Release -- Florida Governor Rick Scott Tours

Beside a massive turbine on display outside the Orlando manufacturing campus of Mitsubishi Power Systems Americas, Gov. Rick Scott, right, talks Monday with Koji Hasegawa, Mitsubishi Power Systems Americas president and CEO, following the governor's announcement that the state's unemployment rates have fallen below the national average.

Published: Monday, March 18, 2013 at 10:21 a.m.

Last Modified: Monday, March 18, 2013 at 11:45 a.m.

Florida's unemployment rate fell slightly to 7.8 percent in January, the first time in five years the state's jobless percentage has been less than the nation's.

There also were 64,000 more Floridians with jobs in December than economists first thought, boding well for job growth this year.

But the unevenness of the recovery was evident in the data released Monday by the Florida Department of Economic Opportunity: the collective jobless rate in Manatee, Sarasota and Charlotte counties actually rose somewhat in the first month of 2013, an increase that analysts attributed largely to seasonal holiday jobs ending.

The state's overall track remains positive.

"This is going to be our cross-over year, where we go from lagging behind the national recovery to starting to make more progress," said Sean Snaith, a University of Central Florida economist. "It is actually happening sooner than I expected."

Other data-crunchers agreed.

"These numbers were better than I expected as well," said Mekael Teshome, an economist who covers Florida and the Southeast for PNC Financial Services.

Southwest Florida's unemployment rate rose in part from the end of jobs tied to the holidays but also because the improving employment picture in the region is prompting discouraged workers to brush off their résumés and apply again for work.

The combined jobless rate in Manatee, Sarasota and Charlotte counties was 8 percent in January, the most recent data available. That compared with an average 7.8 percent in December.

IRISS, too, is on the move -- to a new 32,000-square-foot manufacturing plant in Lakewood Ranch. The shift is occurring because the company is cutting back on outsourced component parts and intends to make more of its safety gear in-house.

The company now employs 32 in Bradenton, and plans to ramp up by another 20 eventually, said Karen Wells, an IRISS vice president.

IRISS is expected to qualify for federal matching funds for many of its new hires, thanks to a government subsidy that pays new employees' paychecks during training.

That subsidy is administered by the Suncoast Workforce Board, which operates a trio of employment centers in Southwest Florida.

The local employment agency still does not know how its $9.8 million annual budget will be affected by the federal sequester, said Suncoast spokeswoman Sally Hill.

Government impact

Despite the sequester's looming $85 billion in cuts, it was government employment that helped drive the jobs gains in Florida.

In its January report, the Department of Economic Opportunity noted total government employment -- federal, state and local -- in Florida was 320,000 in January, 1.7 percent higher than in December and 2.2 percent above January 2012.

Teshome said the government employment figure is significant, though it may be affected later this year by the sequester-inspired cuts.

"Things are not as bad as we thought they were," he said.

The same is true for the overall Florida job market.

January marked the 27th consecutive month of year-to-year declines in Florida's unemployment rate, department data shows. In January 2012, the statewide rate was 9.2 percent.

By comparison, the U.S. unemployment rate for January was 7.9 percent, and the rate in February stood at 7.7 percent. Florida's February jobless figures are scheduled to be released March 29.

"Things have looked quite positive for the U.S. economy," said Christopher McCarty, research director at the University of Florida's Bureau of Economic and Business Research, in Tallahassee. That is important because Florida's economy is tied closely to the nation's.

"Florida's business model still relies heavily on people coming here, either for a visit or to retire," McCarty said.

The pace of those retirees has picked up to about 250,000 annually, which is fueling the housing industry's recovery.

James Mitchell was one Florida transplant, moving to Sarasota from Atlanta earlier this year, and then landing a job restoring fire and water-damaged homes with PuroClean.

"There are a lot of jobs out there," said Mitchell in a refrain rare during the last five years. "You just gotta look."

<p>Florida's unemployment rate fell slightly to 7.8 percent in January, the first time in five years the state's jobless percentage has been less than the nation's.</p><p>There also were 64,000 more Floridians with jobs in December than economists first thought, boding well for job growth this year.</p><p>But the unevenness of the recovery was evident in the data released Monday by the Florida Department of Economic Opportunity: the collective jobless rate in Manatee, Sarasota and Charlotte counties actually rose somewhat in the first month of 2013, an increase that analysts attributed largely to seasonal holiday jobs ending.</p><p>The state's overall track remains positive.</p><p>"This is going to be our cross-over year, where we go from lagging behind the national recovery to starting to make more progress," said Sean Snaith, a University of Central Florida economist. "It is actually happening sooner than I expected."</p><p>Other data-crunchers agreed.</p><p>"These numbers were better than I expected as well," said Mekael Teshome, an economist who covers Florida and the Southeast for PNC Financial Services.</p><p>Southwest Florida's unemployment rate rose in part from the end of jobs tied to the holidays but also because the improving employment picture in the region is prompting discouraged workers to brush off their résumés and apply again for work.</p><p>The combined jobless rate in Manatee, Sarasota and Charlotte counties was 8 percent in January, the most recent data available. That compared with an average 7.8 percent in December.</p><p>January's regional results were mixed, with Sarasota County's jobless rate rising to 8.2 percent from 7.7 percent in December, while Charlotte's rate rose to 8.1 percent from 7.8 percent. Manatee was flat at 7.7 percent.</p><p>In all, there were 29,752 people seeking a job in Southwest Florida, out of a work force of 372,874.</p><p>"Formerly discouraged workers are heartened with improved job prospects," said Teshome, the PNC economist. "So it is not unusual to see sticky unemployment rates during periods of economic recovery."</p><p><b>Ramping up hiring</p><p></b></p><p>De'Jon Fagan got discouraged when he was told, along with hundreds of others, that he was losing his job at Pierce Manufacturing's Bradenton plant because of a lack of demand for ambulances.</p><p>But Fagan's dejection didn't last. He recently landed a job powder-coating metal parts for IRISS Inc., another Bradenton-based manufacturer that makes safety equipment for high-voltage electric installations.</p><p>IRISS, too, is on the move -- to a new 32,000-square-foot manufacturing plant in Lakewood Ranch. The shift is occurring because the company is cutting back on outsourced component parts and intends to make more of its safety gear in-house.</p><p>The company now employs 32 in Bradenton, and plans to ramp up by another 20 eventually, said Karen Wells, an IRISS vice president.</p><p>IRISS is expected to qualify for federal matching funds for many of its new hires, thanks to a government subsidy that pays new employees' paychecks during training.</p><p>That subsidy is administered by the Suncoast Workforce Board, which operates a trio of employment centers in Southwest Florida.</p><p>The local employment agency still does not know how its $9.8 million annual budget will be affected by the federal sequester, said Suncoast spokeswoman Sally Hill.</p><p><b>Government impact</p><p></b></p><p>Despite the sequester's looming $85 billion in cuts, it was government employment that helped drive the jobs gains in Florida.</p><p>In its January report, the Department of Economic Opportunity noted total government employment -- federal, state and local -- in Florida was 320,000 in January, 1.7 percent higher than in December and 2.2 percent above January 2012.</p><p>Teshome said the government employment figure is significant, though it may be affected later this year by the sequester-inspired cuts.</p><p>"Things are not as bad as we thought they were," he said.</p><p>The same is true for the overall Florida job market.</p><p>January marked the 27th consecutive month of year-to-year declines in Florida's unemployment rate, department data shows. In January 2012, the statewide rate was 9.2 percent.</p><p>By comparison, the U.S. unemployment rate for January was 7.9 percent, and the rate in February stood at 7.7 percent. Florida's February jobless figures are scheduled to be released March 29.</p><p>"Things have looked quite positive for the U.S. economy," said Christopher McCarty, research director at the University of Florida's Bureau of Economic and Business Research, in Tallahassee. That is important because Florida's economy is tied closely to the nation's.</p><p>"Florida's business model still relies heavily on people coming here, either for a visit or to retire," McCarty said.</p><p>The pace of those retirees has picked up to about 250,000 annually, which is fueling the housing industry's recovery.</p><p>James Mitchell was one Florida transplant, moving to Sarasota from Atlanta earlier this year, and then landing a job restoring fire and water-damaged homes with PuroClean.</p><p>"There are a lot of jobs out there," said Mitchell in a refrain rare during the last five years. "You just gotta look."</p>